Asian Macro Initial Thoughts Expect a muted open after US jobs and ahead of US inflation and China loans


Markets likely to open higher following the +VE US moves with interest rate sensitives +VE but exporters slightly weaker as the USD weakened.  
Only Australia has data out on Monday.  
Drug companies +VE as Germany and France push back on IP wavier and Sinopharm gets WHO approval (Sinovac Biotech’s should hear this week) 
Federal income tax return filing date of May 17 could be adding pressure to tech stocks as US investors may be selling winners to pay their taxes.
Dogecon dropped 30% in value during Musk’s Saturday Night live appearance.
Oil prices set to rise after the Colonial Pipeline Co to shut down; is the main source of gasoline, diesel and jet fuel for the US’ East Coast.  US declares state of emergency  -VE cross read to other infrastructure projects +VE of internet security plays.

Australia Market futures indicated -4pts with caution ahead to the Business Confidence and Retail Sales data and despite the +VE US close.  Miners & Oil names +VE as OIL, GOLD and IRON ORE all rose.  M&A potential from Crown Resorts and the Star Entertainment Group Ltd
Japan Nikkei futures opened -30pts but has eased to -15pts expect a weak open and consolidation as the market struggles to find direction after the weak US jobs report.  US dollar weakness a slight -VE for exporters. Emergency State extended and growing public opposition to Olypmics 
S Korea Expect markets to open lower with inflation concerns ahead of US inflation data this week.  Tech firm ahead of the Government releasing semiconductor support measures.
Taiwan Market to open higher on strong trade data out after market Friday and +VE sentiment towards Tech in the US on Friday.  But expect selective buying following results.
China Market to open lower on concerns on the US jobs data and increasing pressure on international relations.  Sinopharm should see a bounce as WHO approves its vaccine for emergency use. (Sinovac has not yet been approved but may be this week).   News of high levels of local Government debt -VE and will raise concerns about tightening ahead.
HK ADR’s indicate +85pts @ 28,695 E-commerce remains weak and selective Chinese BanksTelcos -VE as NYSE confirms delisting ADS’s. 
US Futures Opened Dow futures +30 points, S&P 500 +0.1%. Nasdaq 100 futures +0.2%.  But there are concerns about the ransomeware attack on the Colonial Pipeline.

Data today is the ISM New York Index & Consumer Inflation Expectations

Earnings: Marriott, BioNTech, Jacobs Engineering, Simon Property Group, International Flavors and Fragrances, Wynn Resorts, SmileDirectClub, Duke Energy, Air Products, Tyson Foods, Party City, Energizer, Coty

The Biden administration is examining ways to ensure that a waiver of COVID-19 vaccine patents to aid poor countries will not hand sensitive U.S. biopharmaceutical technology to China and Russia, responding to a chorus of concerns, U.S. and industry officials say.

JAPAN Nikkei futures opened -30pts but has eased to -15pts expect a weak open and consolidation as the market struggles to find direction after the  weak US jobs report.  US dollar weakness a slight -VE for exporters. 

Yen closed currently 108.60

No data due 

Tokyo Sunday reported 1,032 new covid cases (-89 DoD) Osaka 875 (first time in 3 days below 1,000)  the nationwide total was  6,486.

The  government may approve the use of coronavirus vaccines developed by AstraZeneca PLC and Moderna Inc as early as May 20, the Nikkei reported on Friday.

The government extended the COVID-19 state of emergency, originally expiring on 11 May, until 31 May, reported Nikkei. Apart from Tokyo, Osaka, Kyoto and Hyogo, officials have also placed Aichi and Fukuoka under a state of emergency.  It is estimated it will lead to an economic loss of ¥1 trillion ($9.2 billion); dimming the prospect for a steady recovery toward the end of the year, according to an economist’s forecast.  PM Suga also said the government aims to ramp inoculations. 

More than 230,000 people have signed a Japanese petition calling for the Tokyo Olympics to be cancelled in the two days since it was launchedonline, as public concerns mount over holding the showpiece event during a pandemic.  Comes as the World Health Organization hopes the Olympics can go ahead in Japan this summer, its emergencies chief said on Friday, saying many of the decisions on the format of the games can only be made last-minute due to evolving risks from the COVID-19 pandemic.  Seems the public has a better attitude in my view; surely for all the prestige and cost of the olympics it can’t be worth risking even one human life?

Novavax Inc said on Friday the distribution of its COVID-19 vaccine in Japan is expected to begin in late 2021 or early 2022 and continue for the near-term, predicting the need for protection against variants in the future.

Nominal monthly wages in Japan in March rose 0.2% YoY for the first increase in 13 months, reflecting a decline in the number of part-timers amid the coronavirus pandemic, the government said Friday. +VE. But the average monthly wages for full-time workers fell 0.3% to 365,804 yen and those of part-time workers dropped 0.8% to 96,350 yen, the data showed.

A mixed report reflecting the uncertainty due to covid.

Philip Morris Head said the company will phase out conventional cigarettes in Japan within 10 years, in an interview with the Nikkei business daily.  The Marlboro maker announced in 2016 a long-term goal to stop selling cigarettes and replace them with alternatives that it says are less harmful -- but this is the first time it has given a clear deadline.

Mitsubishi Corp working with Swiss company South Pole is developing a carbon removal purchase facility which aims to procure $300 million to $800 million worth of carbon dioxide (CO2) removal credits by 2030, South Pole said on Friday.

All Nippon Airways (ANA) posted an annual net loss of 286.7 billion yen ($2.6 billion) Friday but did not release a forecast for the current financial year,  It carried 13.088 million passengers for both international and domestic routes last year, down 75% yearly.

Yomiuri Land Co. announced Saturday that it will reopen its Yomiuriland amusement park on Wednesday. The number of people allowed inside the park will be limited to 5,000, and the park will take thorough measures to prevent infections, such as conducting temperature checks and calling for guests to wear masks.

MUFJ -VE after a full page advert in the FT calls on the company to ’Stop Funding Climate Chaos’  with the caption “When will you stop destroying the planet MUFJ'

SOUTH KOREA Expect markets to open lower with inflation concerns ahead of US inflation data this week.  Tech firm ahead of the Government releasing semiconductor support measures.

No data due until Wednesday’s unemployment and then Friday’s Export/Import Prices.

KDCA Sunday reported 564 new covid cases -137 DoD slight +VE for sentiment 

South Korean’s frenzy for digital coins, especially alternative coins, has pushed the transaction volume for cryptocurrencies past 45 trillion won ($43.11 billion) in the 24 hours until Friday morning. The figure exceeds the combined trading volume of the country’s two stock markets Kospi and Kosdaq by far. On Thursday, the main Kospi recorded a transaction volume of 16.62 trillion won and Kosdaq 7.4 trillion won.  Slight -VE for equities.

Government measures to help cement South Korea’s leadership in the global semiconductor market to be announced this week (probably Thursday) expected to unveil what it calls the “K-Semiconductor Belt Strategy,” which could include drastic increases in tax benefits for chipmakers’ R&D projects and facility investments. So industry watchers are paying keen attention to how much Samsung Electronics and SK hynix could benefit from the measures that would largely pivot on tax breaks.

Samsung Securities Co. on Friday reported its first-quarter net income of 289 billion won ($257.8 million), up 1776.4 percent from a year earlier. In line with estimates a slight +VE

South Korea's oil refining industry is expected to rebound in the first quarter thanks to surging global oil prices and a recovery in refining margins after hemorrhaging from the pandemic-driven slump last year, analysts said Saturday. +VE SK Innovation Co., GS Caltex Corp., report next week.  S-Oil Corp. and Hyundai Oil Bank Corp have already reported and showed a return to the black in Q1.  +VE

Samsung Electronics will share its 505 patented technologies with local small and medium enterprises, the Ministry of Trade, Industry and Energy said Friday.  The SMEs that wish to benefit from the governments technology transfer program are required to submit their application via the ministry or the Korea Institute for Advancement of Technology, by June 10. +VE

Samsung Electronics Co. is mulling multiple new smartphone launches in August, industry sources said Sunday, as the South Korean tech giant eyes to expand its leadership in the mobile market.  Models expected to be released include the Galaxy S21 FE, the Galaxy Z Fold3 and the Galaxy Z Flip2, in late August, according to the sources.  +VE

Naver plans to expand its research and development network in the North American region, particularly focusing on Silicon Valley, as part of its globalization efforts, according to officials. +VE 

Korean companies’ exposure to digital assets grow Report shows Dunamu, Kakao expand investment in virtual assets, others to follow to diversify portfolio, experts say.  At least 23 companies reported they were holding various types of cryptocurrencies as intangible assets as of the end of last year, according to financial reports filed with the Financial Supervisory Service, the country’s financial regulator.

The Malaysian government has decided to reverse its preliminary decision to impose anti-dumping tariffs on Korean polyethylene terephthalate products, according to industry officials on Sunday.  +VE for SK Chemicals and TK Chemical.

The proportion of stock short selling in South Korea accounted for 3.4 percent of total transactions in the first week of the practice's conditional resumption last week, down from 5.5 percent when the trading technique was banned last year, the bourse operator said Sunday.

TAIWAN Expect market to open higher on strong trade data out after market Friday and +VE sentiment towards Tech in the US on Friday.  But expect selective buying following results.

No data due this week.

After Market Friday 
Balance of Trade Apr $6.16b vs 3.66b Mar (F/cast was 3.3b)
Exports Apr +38.7% vs +27.1% Mar (Consensus was +26.9%)
Imports  Apr +26.4% vs +27% Mar (F/cast was +4%)

Exports +VE as economic activity globally and inventory building for tech and non-tech products, pushing up their selling prices, during a historically slow season, Department of Statistics Director-General Beatrice Tsai told a news conference in Taipei.  They expect exports to remain high this month too.  +VE Tech especially but also saw a extension to non-tech sectors, with chemicals, minerals, textiles, base metals and plastics +VE

US urges WHO to invite Taiwan to annual meeting, a move opposed by China.  Sec of State Blinken says there is ‘no reasonable justification’ for the island’s exclusion from the World Health Assembly later this month.  Taiwan offers ‘valuable contributions and lessons’ from its response to global health issues, he said to discuss ways to strengthen international cooperation to end the coronavirus pandemic in its meeting starting May 24.  “The United States calls upon the WHO director general to invite Taiwan to participate as an observer at the WHA – as it has in previous years, prior to objections registered by the government of the People’s Republic of China,” he added.  +VE 

China Airlines Ltd yesterday confirmed that it would temporarily reduce its cargo flight services to cope with a pilot shortage, as one-sixth of its pilots have been sidelined by a COVID-19 outbreak.  “We are working out a new schedule,” the airline said in a statement after local news media reports on Saturday said that it would be reducing its cargo services from Wednesday, primarily affecting US destinations. -VE

Rexon Industrial Corp Ltd a maker of fitness equipment and power tools, saw its shares drop 15.63 percent in the past two sessions after a major client, Peloton Interactive Inc, last week announced recalls of its Tread+ and Tread treadmills.-VE

Macronix International yesterday posted its best April revenue, at NT$3.81 billion (US$136.52 million), lending support to its optimistic forecast about customer demand amid a persistent chip shortage.  April revenue +5.6% MoM and +11.2% YoY. Macronix has forecast a gradual growth in quarterly revenue through the end of the year, as customers scramble to secure chip supply, boosting its book-to-bill ratio to “a stunning level.”  +VE

Dimerco Express Corp yesterday reported a net profit of NT$300 million (US$10.7554 million) for Q1 +207% YoY thanks in part to higher freight rates.  Earnings per share (EPS) rose to NT$2.38, from NT$0.77 a year earlier.   Dimerco, focuses on strategic logistics planning and execution for the international transportation of goods, attributed the profit growth to higher revenue of NT$6.98 billion in Q1, +68% YoY.  Revenue from its air and sea cargo forwarding operations +53% YoY to NT$3.5 billion and +93% to NT$3 billion respectively, making up 51 percent and 44 percent of its total sales, company data showed.  However,Q1 gross margin fell from 15.95% a year earlier to 13.71 percent due to higher operating costs, it said in a filing to the Taiwan Stock Exchange (TWSE). +VE

Wistron Corp yesterday reported Q1 net profit  -95% QoQ and -84% YoY to NT$113 million (US$4.05 million), dragged by non-operating losses. Earnings per share (EPS) dipped to NT$0.04, from NT$0.26 a year earlier and NT$0.83 the previous quarter.  Wistron attributed the losses to its holdings of Luxshare Precision Industry Co, whose share price has plunged about 40% since it bought 3 billion yuan (US$466 million) of the cable and connector supplier’s common shares in July last year. Slight -VE

Wiwynn Corp, a cloud computing equipment supplier, on Friday reported that first-quarter net profit and earnings per share were the highest for the January-to-March period in the company’s history.  Net profit was NT$1.7 billion (US$60.9 million), -37.82% QoQ but +16.17% YoY said the company, a subsidiary of contract electronics maker Wistron Corp.“Looking to the rest of 2021, demand for cloud data centers will continue to grow,” Wiwynn said in the statement. “However, the pandemic is still affecting the supply chain and there is still a risk of raw material shortages. Wiwynn is committed to maintaining sufficient inventory and operational flexibility to meet customer needs,” the company added. +VE

Quanta Computer the world’s largest laptop contract maker, reported consolidated revenue of NT$84.84 billion last month, -10.2% MoM  but +1.7% YoY Cumulative revenue in the first four months of this year was NT$353.79 billion, +29.3% YoY. The company shipped 6.1 million laptops last month, -7.58% MoM , but +32.6% YoY  +VE

Compal Electronics experienced a sharper month-on-month drop in revenue, -17.38% MoM and -5.25% YoYo NT$89.35 billion.  Compal shipped 4.4 million laptops last month, -20% MoM but up 2.33% YoY. The company said that demand remained strong, but tight components supply, including CPUs, monitors and power supplies, affected shipments. Compal expects to ship more than 47 million laptops this year, at least 10 percent more than it did last year. +VE
Inventec Corp  yesterday posted sales of NT$38.19 billion for last month, -6.8% MoM and -22.5% YoY .  Cumulative sales in the first four months of the year +8.75% YoY NT$150.04 billion. Slight -VE

Evergreen Marine Corp  reported better-than-expected earnings for the first quarter amid an increase in freight rates due to substantial demand and a supply shortage. In a statement on Friday reported NT$36.08 billion (US$1.29 billion) in net profit for the January-to-March period, or earnings per share (EPS) of NT$7.04, beating a market estimate of about NT$5.  Its Q1 EPS was a significant improvement from its losses per share of NT$0.09 over the same period last year, data compiled by the Taiwan Stock Exchange showed.  +VE and good cross read for Yang Ming Marine Transport who has yet to report.

Win Semiconductors Corp the world’s largest pure-play gallium arsenide foundry, on Friday said its board of directors had approved a plan to invest NT$10 billion (US$358.3 million) to build a fab at the Southern Taiwan Science Park’s  branch campus in Kaohsiung’s Lujhu District over the next three years. +VE

Advantech Co the world’s biggest industrial PC maker, yesterday said that consolidated revenue last month expanded to NT$4.68 billion (US$167.7 million) from a year earlier, bringing cumulative sales in the first fourth months of this year to NT$17.84 billion, +13.86% YoY.  Buoyed by strong demand from Chinese basic infrastructure projects, the company’s industrial Internet of things (IIoT) sector remains the biggest growth driver, the company said.  The IIoT sector accounted for 37% of Q1 revenue, +54% YoY, the company said in an earnings call with investors. China’s ambitious goal to build “smart factories,” electric vehicles and green energy infrastructure is driving growth for Advantech’s products. +VE

The central bank on Friday met with 36 domestic lenders, asking them to comply with risk management requirements and refrain from cutthroat competition in mortgage operations.  The plea came after housing and construction lending continued to grow last quarter despite two waves of selective credit controls intended to cool the local property market.  Slight +VE

Gasoline and diesel prices are this week dropping by NT$0.2 per liter, after prices were kept unchanged last week, CPC Corp, Taiwan and Formosa Petrochemical Corp said yesterday.

CHINA Expect market to open lower; concerns on the US jobs data and increasing pressure on international relations.  Sinopharm should see a bounce as WHO approves its vaccine for emergency use. (Sinovac has not yet been approved but may be this week).   News of high levels of local Government debt -VE and will raise concerns about tightening ahead.

On Tuesday we get Inflation data expected to have risen.  We could also get New Yuan Loans, Outstanding Loan Growth, Total Social Financing, Vehicle Sales and M2 Money Supply;  Loans likely to be light as PBOC doesn’t want then higher than last year.

No data due but after market Friday 
Foreign Exchange Reserves Apr $3.198T vs 3.17T Mar (F/cast was 3.17T)

China reported 12 new coronavirus diseases patients in the mainland on May 8, up from seven a day earlier, on Sunday. The National Health Commission said in a statement that all the new patients were imported infections originating from overseas. The number of new non symptomatic patients, which China does not classify as confirmed, increased to 10 from eight a day earlier.

China has urged United Nations member states not to attend an event planned this week by Germany, the United States and Britain on the repression of Uyghur Muslims and other minorities in Xinjiang, according to a note seen by Reuters on Friday.  The aim of the event is to "discuss how the U.N. system, member states and civil society can support and advocate for the human rights of members of ethnic Turkic communities in Xinjiang," according to an invitation.

In response "It is a politically-motivated event," China's U.N. mission wrote in the note, dated Thursday. "We request your mission NOT to participate in this anti-China event."

China charged that the organizers of the event, which also include several other European states along with Australia and Canada, use "human rights issues as a political tool to interfere in China's internal affairs like Xinjiang, to create division and turbulence and disrupt China's development.”

The CCP is looking to ease travel restrictions and blast Taiwan for a lack of vaccines to sway public opinion, a Taiwanese official said.  In preparation for its centennial on July 1, the Chinese Communist Party (CCP) has begun a “united front” offensive to influence Taiwanese public opinion to force officials to lift restrictions on cross-strait exchanges, an official said yesterday.

China’s provinces fall deeper into local government debt mire, study finds.  Only Shaanxi reported a decline in debt ratio by June 2020, according to joint review. Nine provinces, including Guizhou and Inner Mongolia, had a ratio of above 100 per cent. 

In all, 23 of the provincial areas had a fiscal balance ratio – a measure of debt repayment ability – below 50 per cent. The ratio is calculated as the share of budget revenues to budget expenditure. The results mean that most provinces are relying on transfer payments from Beijing or new debt to maintain fiscal balance. -VENew Zealand wants a more mature relationship with China that goes beyond trade ties and gives room for disagreement, particularly on issues of human rights, the Pacific nation's foreign minister said on Friday.  Nanaia Mahuta's comments come after Prime Minister Jacinda Ardern said this week that differences with its top trading partner were getting harder to reconcile, and the country's parliament unanimously declared human rights abuses were taking place against Uyghur people in China's Xinjiang region, angering Beijing.

Xi Jinping pledged support for Tokyo Olympics as Japan extends coronavirus  emergency;  telling  IOC chief Thomas Bach he is confident of hosting the 2022 Winter Games in Beijing on schedule despite the pandemic.  Comes as China is facing boycott threats over human rights issues

World Health Organization (WHO) added a Sinopharm vaccine to its list of approved Covid-19 jabs; good news for the vaccine maker and should prompt a bounce after Friday’s  selling on concerns about IP rights being waived. Merkel and Macron have now both said that waiving IP is not a solution; key is the export of vaccines and ingredients.  Sourcing the ingredients could also be an issue.  Sinovac Biotech’s is due to be reviewed by the WHO by next Friday.   It will help with Beijing’s Vaccine Diplomacy efforts and could mean that inoculation with them will make international travel easier, as most countries look to accept WHO vaccines as an acceptable jab to avoid lengthy quarantine.

Chinese city levels Dianchi Lake villas after Beijing sees red at green zone violations Demolition crews and equipment have been sent into a nature preserve to destroy housing singled out for central government anger.  The illegal development turned what was once a lush area into a concrete mountain, inspectors say. Slight -VE Developers

China is stepping up efforts to control the spread of African swine fever, restricting the movement of live pigs within designated regions.  While the country aims for a full recovery from the pork crisis by midyear, experts warn that this goal could be much further away.  On April 29, the northern region of Inner Mongolia reported the country’s 10th sporadic outbreak of African swine fever, a disease that first erupted in China in August 2018.  The new policy is to transport pork not pigs.  Comes as the new outbreak has milder symptoms making them harder to detect.

Huawei’s chip unit HiSilicon to see massive decline in 5G chip market this year.  It had 23% of the 5G phone chipset market in 2020, is expected to see that share shrink to less than 5 per cent this year; a sign of the power of US sanctions.   MediaTek, which designs processors for mobile applications, is the major supplier to Chinese smartphone vendors like Xiaomi, Oppo and Vivo

Semiconductor shortage sees China’s carmakers, chip suppliers join forces to tackle the problem.  The extent to which the chip shortage has hit Chinese carmakers is not known, although there is growing anecdotal evidence of the disruption it is causing.   It was the first time the Chinese automakers association was an official sponsor of the three-day Global Semiconductor Industry Expo, which ended Saturday. +VE

SCMP reports that young people are turning to Mao after Tencent manager posted that young people today sleep too much.  Chairman Mao argued that while the young should work hard, the load should not be too heavy and they must also rest their bodies. The Quotations from Chairman Mao Zedong collection was the sixth bestseller in the past 24 hours on online platform, moving up from a ranking of 17th over the past week. On Dangdang, another go-to place for book lovers, the Mao collection was ranked 23rd most popular in the past 24 hours, moving up from 41st over the past week. Likely to rile President Xi who is seeking to replace Mao as the protector of the Communist Party 

China will set up "a line of separation" at the summit of Mount Everest to prevent the mingling of climbers from COVID-hit Nepal and those ascending from the Tibetan side as a precautionary measure, Chinese state media reported on Sunday.
Everest base camp on the Nepalese side has been hit by coronavirus cases since late April. The Nepalese government, starved of tourism revenue, has yet to cancel the spring climbing season, usually from April to early June before the monsoon rains. It was not immediately clear how the line would be enforced on the summit, a tiny, perilous and inhospitable area the size of a dining table.

Mainland Chinese lawyer Lu Siwei was delisted after taking up Hong Kong fugitives case and has now been barred from leaving country to join US fellowship programme.  Officials stopped him at Shanghai airport on Saturday when he was about to board a flight to Seattle to attend the Humphrey Programme. -VE

HONG KONG  ADR’s +85pts @ 28,695 E-commerce remains weak and selective Chinese Banks.  Telcos -VE as they confirm delisting ADS’s. 
No data due but after market Friday   
Foreign Exchange Reserves Apr $490.6b vs 491.4b Mar revised  (F/cast was 506b)
No data this week until Friday’s GDP Growth Rate

Short Selling Friday 16.1% vs 13.1% Thursday 
Top Shorts
 Country Garden (2007) 42%, Galaxy Ent (27) 42%, Hengan (1044) 41%,NWD (17) 36%, Hang Seng Bank (11) 32%, Bud Apac (1876) 31% (despite good numbers yesterday), Sunny Optical (2382) 30% (after weak numbers from Largen), Bank Of China (3988) 30%, Wharf REIC (1997) 29%, BABA (9988) 28% (reports next week), Ali Health (241) 28%, BoC HK (2388) 26%, CK Assets (25%).
SIHUAN PHARM (00460.HK) announced that it had on 7 May repurchased on market a total of 10 million shares,
 involving roughly $26.674 million.

Saturday and Sunday saw no new local covid cases reported in Hong KongA fully vaccinated BGI staff member was infected with untraceable source.
He was tested positive for the virus on May 5 after having his sample collected at the Yuen Long center a day before. However, after being admitted to the hospital, he was again tested negative for the virus.Follows reports that Indian relief crews were tested clear, quarantined and then become infected on joining ships. Suggest that the current test requires attention.
Hong Kong will ease quarantine for fully vaccinated inbound travelers and residents who are close contacts of people infected with Covid-19, loosening one of the world’s strictest policies amid efforts to encourage inoculation. Quarantine reduced to 7 days from 14.Inoculated people from high and medium risk origins will have their stays reduced from 21 days to two weeks plus an additional seven days of self monitoring. Those coming from extremely high risk areas will still need to quarantine for three weeks, even if they’ve received their shots.

Financial Secretary Paul Chan announced a shortened distribution period of the $5,000 consumption vouchers.
  While the Government will no longer disburse the vouchers in five phases, it will not be a one-off distribution neither. The voucher expiry date will be extended to before Lunar New Year.

The latest survey by Hong Kong Professional Teachers’ Union showed that 40% of teachers wish to leave the education sector,
with half of them already have plans in place to do so. Around 70% of 474 interviewed teachers said that “growing political pressure” is the main cause for their leaving. -VE for Hong Kong’s status.

Henderson Land Development (0012) sold nearly 70% of the 196 units on offer
 at The Henley I in Kai Tak as of 5 pm yesterday.
RK Properties released 160 units in the fourth price list of SouthLand, the first phase of The Southside development atop Wong Chuk Hang Station, at an average price of HK$33,980 per sq ft after discounts, 14.45 percent higher than the first price list. The cheapest unit, measuring 290 sq ft, is offered at HK$9.58 million after an 18 percent discount is applied.The developer has collected about HK$9 billion after selling 426 units at the project.
CK Asset (1113) sold a 2,154-sq-ft unit at 21 Borrett Road in the Mid-Levels for HK$170 million, or HK$78,923 per sq ft.  CK Asset has raked in HK$2.15 billion after selling eight units at the project. 
Centaline Property Agency reported 17 secondary transactions at 10 blue-chip housing estates over the past weekend, the same as the previous weekend.
CHINA MOBILE (00941.HK) CHINA TELECOM (00728 HK) and CHINA UNICOM (00762.HK) -VE as NYSE announced the Determination to re-commence delisting proceedings of their respective ADSs in the US
ALIBABA (9988) and (9618) slight -VE as ByteDance hires thousands of staff and ropes in big-name sponsors like Xiaomi (1810) impresario Lei Jun to drive its next "major breakthrough" into global business.
TENCENT (00700.HK)'s Supercell shall pay US$92.20 million (HK$720 million) in damages to Japan's Gree in a patent trial about functions used in popular online games.
HKTV (01137.HK) announced that Monthly GMV on Order Intake was $488 million, down 0.8% yearly and 7% monthly, in April 2021.  -VEJD-SW (09618.HK) announced that it will report its financial results for the three months ended March 31, 2021 on Wednesday, May 19, after the trading hours of the Hong Kong Stock Exchange and before the opening of the U.S. market.
GAC GROUP (02238.HK) announced that in 4M21, the automobile sales volume amounted to 683,700 units, an increase of 44.73% year-on-year.
BOC AVIATION (02588.HK) announced that on 7 May 2021, the Company granted Awards of Restricted Share Units (RSUs) in respect of an aggregate of 820,600 Shares to Robert Martin and Zhang Xiaolu, both Executive Directors of the Company, and certain directors of subsidiaries of the Company, pursuant to the Long Term Incentive Plan.
SF REIT (02191.HK)'s international placing was over-subscribed in two hours, said insiders. Around $377 million in margin quota, over-subscribed by 0.41 times, was purportedly recorded as of 17:30.
RONSHINECHINA (03301.HK) announced that the contracted sales in January-April 2021 approximated RMB54.178 billion, up 93.88% yearly.
MIDEA REAL EST (03990.HK) announced that for the four months ended 30 April 2021, the contracted sales amounted to approximately RMB53.06 billion, up 119.98% year-on-year. The corresponding gross floor area sold amounted to approximately 4.499 million sq.m.
Lands Department disclosed that it has received six tenders for the commercial site at Caroline Hill Road, Causeway Bay. SINO LAND (00083.HK), together with LIFESTYLE INT'L (01212.HK), KERRY PPT (00683.HK) and C C LAND (01224.HK)  -0.040 (-2.174%)   were among the bidders.  George Hongchoy, CEO of LINK REIT (00823.HK), which is one of the suitors, said their tender reflected the group's confidence of Hong Kong's prospects
PRU (02378.HK) announced plans to decarbonise its portfolio of assets held on behalf of its insurance companies with a new goal of becoming “net zero” by 2050.  The group is taking actions to help deliver on its objective, including a 25 per cent reduction in the carbon emissions of all shareholder and policyholder assets by 2025.
Snowball Finance plans to go public in the U.S., set to make filings as soon as this month and aiming to raise roughly US$300 million, reported Bloomberg. The timeline and offer size have yet to be finalized.  The Chinese financial information platform, founded in 2010, had introduced US$120 million in strategic investment from Ant Group in 2018, according to the former's website.
China Association of Automobile Manufacturers wrote in a preliminary forecast that in April 2021, the sales volume totaled 2.173 million vehicles, -13.9% monthly but +5% yearly.
CAFE DE CORAL H (00341.HK)  announced that in response to rumours circulating on social media about Cafe de Coral banning Filipino domestic helpers from entry, Cafe de Coral Group clarified the rumours are absolutely unfounded and untrue. The company reported the case to the Police and reserve the right to pursue further action against relevant parties.
Centa-City Leading Index (CCL) last tracked at 183.25, up 0.05% weekly to a new high since September 2019. The figure was 3.79% away from the record high.
CCL Mass grew 0.23% weekly to 185.89; 
CCL (mid-and-small units) added 0.17% weekly to 183.51; 
CCL (large units) slipped 0.58% weekly to 181.92.

DOW +0.66%, NDX +0.88%, S&P +0.74%, Russel 2K +1.35%

A mixed open but stock worked higher in the first hour, the weak jobs number taken by most to mean Fed tapering would be pushed further out. Dow then worked slightly higher to close at a new high.NDX drifted lower until after lunch and then worked slightly higher into the close. S&P traded  sideways in a tight range.

Gains in F&B  and Leisure are generally low paid and so little added pressure on wage inflation.  The loss of temporary job is a slight +VE if they are converted into permanent positions but the loss at courier jobs will be -VE for the delivery app companies.  Manufacturing and Retail losses are a concern as the economy is supposed to be re-opening. BUT some think there could be seasonal adjustment to be made and so the data may not be so weak as the initial numbers suggest.

US. auto parts maker Lear +1.5% (LEA.N) on Friday reported a better-than-expected Q1 profit and raised its full-year outlook, helped by robust demand in key markets such as China, which is leading the sector's recovery from the COVID-19 crisis.  Lear's results come a day after rival Magna International +2.6%  (MG.TO) also beat estimates for quarterly results, driven by strong China demand. +VE but China Association of Automobile Manufacturers on Friday wrote in a preliminary forecast that in April 2021, the sales volume totaled 2.173 million vehicles, -13.9% monthly but +5% yearly.

Banks slight -VE as rates rises pushed further out after jobs data; JPMorgan Chase +0.3%, Citigroup +0.4% Wells Fargo -0.2%, Amex +1.3%
Work from home names: Facebook -0.3%, Apple +0.5%, Amazon -0.5%, Netflix +0.9%,  Disney +1.7%, Zoom Video +0.8%, Alphabet +0.6% and Microsoft +1.1%,
Tech NXP Semi +2.8%, Nvidia +2%, Micron +1.4%, AMD +1.2%, Skyworks -0.5%
Re-opening stocks  Boeing +2.5%, Caterpillar +1.7%, Simon Property +1.6% (reports this week), Kohl’s +2.5%, Nordstrom +3.7%, Gap +2%, United Airlines +3.2%, Carnival +3%, Wynn Resorts +2.9%, Chevron +0.9%, Exxon Mobil +1.4%,  
Lock down names Campbell Soup -0.5% General Mills -0.9%, JM Smucker -0.6%


NonFarm Payrolls Apr 266k vs 770k Mar revised (F/cast was 950k)

Notable job gains in leisure and hospitality (331K), other services (44K), and local government education (31K) BUT losses in temporary help services (-111K) and in couriers and messengers (-77K). Manufacturing (-18K) and retail trade (-15K) and were unchanged in construction. 

In April, nonfarm employment is down by 8.2 million, or 5.4%, from its pre-pandemic level in February 2020. Shortages of skilled workers and the supply of parts and materials could hurt factory employment in the short-run. Some analysts also consider that enhanced unemployment benefits are keeping people at home and not taking jobs.  +VE for US interest rates being kept low for longer.

Unemployment Rate Apr 6.1% vs 6% Mar (F/cast was 5.8%)

Ave Weekly Hours Apr 35 vs 34.9 Mar (F/cast was 34.9)

Ave Weekly Earnings Apr +0.3% vs +4.2% Mar (F/cast was -0.2%)

Participation Rate Apr 61.7% vs 61.5% Mar (F/cast was 61.7%)

Wholesale Inventories  Mar +1.3% vs +0.9% Feb  (F/cast was +1.4%)

Baker Hughes Total Rig Count 448 vs 440 prior

Baker Hughes Oil Rig Count 344 vs 342 prior

Consumer Credit Change Mar $25.84B vs 26.13B Feb revised (F/cast was 18.7B)

Higher than F/cast but down MoM I think people are still concerned about saving/paying down debt over spending.

USD was weaker vs Yen & Euro. Bitcoin +3% @ 57,611.83,  VIX -9.2% @ 16.7,  

US T10 @ 1.579% eased on the jobs report but later ticked higher.

OIL Brent +0.28%, WTI +0.29% despite concerns about the impact from covid in India.

Gold +0.9%, Silver +0.32%, Copper +3.18% Platinum -0.1%, Palladium -0.9%.

AHEAD Monday ISM New York Index and Consumer Inflation Expectations 

DAX +1.34%, CAC +0.45%, FTSE +0.76%

Markets to open higher following the mainly +VE state of Asian markets but DAX and CAC dipped in early trades on mixed data before working higher. German exports saw an 11 month of expansion +VE.  UK rising as local election results and Scottish parliamentary results are posted.  Markets dipped on the weak US jobs number but the recovered.  Most sectors closed in the green.

Earnings in focus;  reported before the bell.

Siemens +3% after it raised its full-year profit and sales guidance on Friday for the second time this year after reporting adjusted second-quarter EBITDA (earnings before interest, tax, depreciation and amortization) for its industrial businesses of 2.1 billion euros ($2.53 billion), a 31% increase on the same period last year. 
Adidas +8.4% also raised its sales outlook and reported a net income of 502 million euros for the first quarter of this year, up from 26 million euros in 2020.

Meggitt, +7.5% but was 11%+ initially on reports of a possible takeover.

BMW  +0.3% off its midday high confirmed its full-year profit targets but cautioned that there could be volatility ahead due to rising raw material costs and supply disruptions. 

Rubis -6% after its first-quarter earnings.



Balance of Trade Mar €20.5B vs +18.2B Feb revised  (F/cast was +17.6B)

Exports sa Mar +1.2% MoM vs+1% Feb revised (Consensus was +0.5%) 

Imports sa Mar +6.5% MoM vs +3.6% Feb (Consensus was +0.7%)

Industrial Production Mar +2.5% MoM vs -1.9% Feb revised (F/cast was +1.7%)

Current Account Mar €30.2B vs +18.6B Feb (F/cast was +25.2B)


Balance of Trade Mar €-6.1B vs -5.1B Feb (F/cast was -4.2B)

Industrial Production Mar +0.8% MoM vs -4.8% Feb revised  (F/cast was +2.5%)

Private Non farm Payrolls Q1 +0.3% QoQ vs -0.1% Q4  (F/cast was +0.7%)

Current Account Mar €-2.9B vs -2.2B Feb revised (F/cast was -3.2B)

Construction PMI Apr 61.6 vs 61.7 Mar (F/cast was 62.3)


EUROZONE No data due. 

GERMANY No data due.  

FRANCE No data due.  

UK  Halifax House Price Index.